CPP’s Child Rearing Dropout Provision

One way you may be able to increase your CPP benefits is by taking advantage of the “Child Rearing Dropout Provision.” If you stopped working – or worked fewer hours – to care for your young children under the age of seven, that period could be excluded from your contributory period. It can also affect…

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Why Holiday Shopping Is More Expensive Than You Think

In the last couple of months there have been a plethora of surveys on how much Canadians spend on Christmas shopping. Unlike our neighbours to the south (who are spending less), we apparently are more confident about our economy and plan to increase spending this year by 2 to 3.5 percent. Related: Saying, “I Can’t…

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10 Useless Kitchen Gadgets

I’ll begin by saying that I love kitchen gadgets and small appliances.  Or, to be more accurate I love the idea of them.  I want to be the person who makes their own cheese, slices meat in thin even strips, and cooks a succulent pot roast in less than 20 minutes.  The reality is it’s…

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Owning Your Home Vs. Renting

Owning your own home has always been an important part of the Canadian dream, but times they are a-changin’.  The high cost of housing in many major cities and the more transient nature of the workforce often make people rethink this choice. Related: How much house can I afford? If you’ve already made the decision…

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What Is Your Investing Style?

Whether you are a do-it-yourself investor or you rely on a financial advisor you have an overall strategy of choosing your investments based on your profile, risk tolerance and beliefs that will enable you to achieve your objectives. Related: 5 Challenges DIY Investors Face What investing style fits you? Index investing An index is a…

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The Scoop On Preferred Shares

I have always dismissed preferred shares.  The definition I heard was that preferreds are a hybrid of both equity and fixed income investments with the worst characteristics of each, and who would want that?  Plus their special added features – redeemable, callable, retractable, convertible, perpetual, cumulative – just seemed too complicated to me. Related: Why…

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The Burden Of Debt

An RBC survey showed that average non-mortgage debt has increased again this past year by an average of 21% or almost $2,800 for a total consumer debt load of nearly $16,000. Some reasons are given, such as lagging job growth and incomes only rising moderately, but the actuality is that people are still spending beyond…

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Do Budgets Allow For Overspending?

Preparing a budget is a very basic element in a financially ordered life.  It enables you to monitor your spending and become more conscious of where your money goes. But a survey done jointly by Brigham Young University and Emory Business School surprisingly found that consumers with a budgeted amount for goods are likely to…

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Dreaming Of A Lottery Win

A survey done by Capital One Canada showed that one-third of respondents admit their financial plans include a future injection of good luck, either by receiving a large inheritance (10%) or by winning the lottery (18%). Surveys like this have been done from time-to-time for several decades and it continues to surprise me that, even…

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RRSP Contribution Or Mortgage Pay Down?

One question I was often asked when I worked in banking was, “Should I pay down my mortgage or maximize my RRSP contributions?” Being a good employee concerned with the (you know who’s) bottom line, the simple answer was usually, “Maximize your RRSP contribution, then use your (considerable) tax refund to make a lump sum…

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